Financial Position and Assets - Cash and cash equivalents increased to $11.46 billion as of June 30, 2024, compared to $9.26 billion as of December 31, 2023[3] - Total current assets rose to $29.10 billion as of June 30, 2024, up from $25.95 billion as of December 31, 2023[3] - Total non-current assets grew to $44.27 billion as of June 30, 2024, up from $39.98 billion as of December 31, 2023[3] - Total shareholders' equity (consolidated) increased to $16,805,049 as of June 30, 2024, up from $15,643,656 at December 31, 2023[6] - Consolidated investments increased to R$17,205,464 as of June 30, 2024, up from R$13,683,725 at the end of 2023, primarily driven by investments in subsidiaries[186] - The consolidated property, plant, and equipment increased to 26,455,758 from 25,668,222, with additions of 1,022,465[191] - Intangible assets increased to $3,791,204 as of 06.30.24, with additions of $106,749 and disposals of $3,338[194] - Consolidated intangible assets reached $7,994,271, driven by additions of $107,702 and exchange rate variations of $301,152[195] Liabilities and Debt - Total current liabilities increased to $28.51 billion as of June 30, 2024, compared to $25.55 billion as of December 31, 2023[3] - Loans and borrowings under current liabilities decreased to $1.95 billion as of June 30, 2024, from $2.24 billion as of December 31, 2023[3] - Trade accounts payable under current liabilities increased to $14.65 billion as of June 30, 2024, from $14.01 billion as of December 31, 2023[3] - Total non-current liabilities increased to $21.59 billion as of June 30, 2024, compared to $19.28 billion as of December 31, 2023[3] - Loans and borrowings totaled $19,606,704, with current liabilities at $1,951,420 and non-current liabilities at $17,655,284[196] - Debentures increased to $8,505,965, with an average rate of 12.15% and a weighted average maturity of 6.84 years[196] - Foreign currency bonds grew to $7,030,656, with an average rate of 5.34% and exchange rate variations of $917,065[196] - Gross debt increased by 13.7% to R$22,079 million in 2Q24 compared to R$19,414 million in the previous period[109] - Net debt decreased by 0.9% to R$8,932 million in 2Q24 from R$9,016 million in 1Q24[109] Equity and Earnings - Total equity rose to $15.75 billion as of June 30, 2024, from $14.92 billion as of December 31, 2023[3] - Accumulated earnings increased to $1.49 billion as of June 30, 2024, compared to $0 as of December 31, 2023[3] - Non-controlling interests in equity grew to $1.05 billion as of June 30, 2024, from $720.23 million as of December 31, 2023[3] - Net income attributable to controlling shareholders in Q2 2024 was 1,492,745 thousand Brazilian Reais, a significant improvement from (2,392,927) thousand Brazilian Reais in Q2 2023[4] - Comprehensive income for the consolidated entity in Q2 2024 was 1,491,887 thousand Brazilian Reais, up from (2,224,381) thousand Brazilian Reais in Q2 2023[5] - Comprehensive income for the period was $1,687,636, driven by income for the period of $1,492,745[6] - Net income in 2Q24 was R$1,094 million, a significant improvement from a net loss of R$1,337 million in 2Q23, representing a year-over-year increase of 181.8%[90] - Income before taxes for the Consolidated was R$1,313,211 for the April-June 2024 period, a significant improvement from the loss of R$1,460,615 in the same period of 2023[183] Revenue and Profitability - Net sales for the consolidated entity in Q2 2024 reached 28,307,101 thousand Brazilian Reais, a significant increase from 25,382,940 thousand Brazilian Reais in Q2 2023[4] - Gross profit for the consolidated entity in Q2 2024 was 7,154,254 thousand Brazilian Reais, compared to 3,158,949 thousand Brazilian Reais in Q2 2023[4] - Operating income for the consolidated entity in Q2 2024 was 2,955,584 thousand Brazilian Reais, up from (540,644) thousand Brazilian Reais in Q2 2023[4] - Net revenue in 2Q24 reached R$14,930 million, a 22.3% increase compared to 2Q23[27] - Adjusted EBITDA in 2Q24 was R$2,621 million, with a margin of 17.6%, up 160.4% year-over-year[27] - Gross profit surged by 164.5% year-over-year to R$3,930 million in 2Q24, with a gross margin of 26.3%[120] - Adjusted EBITDA grew by 160.4% year-over-year to R$2,621 million in 2Q24[120] - The company's net margin improved to 7.3% in 2Q24, up from -11.09% in 2Q23, reflecting a significant turnaround in profitability[90] Cash Flow and Liquidity - Consolidated net cash provided by operating activities increased to 4,187,919 thousand Brazilian Reais in 2024 Jan-Jun, up from 1,337,686 thousand Brazilian Reais in the same period of 2023[7] - Consolidated net increase in cash and cash equivalents was 2,193,194 thousand Brazilian Reais in 2024 Jan-Jun, compared to a decrease of 636,660 thousand Brazilian Reais in 2023 Jan-Jun[7] - Free cash flow in 2Q24 was R$1,728 million, more than double the R$844 million recorded in 1Q24[27] - Net cash provided by operating activities improved significantly to R$2,266 million in Q2 2024 compared to R$743 million in Q2 2023[128] - Net cash used in investing activities decreased to R$1,376 million in Q2 2024 from R$573 million in Q2 2023, reflecting lower capital expenditures[128] - Net cash provided by financing activities turned positive to R$451 million in Q2 2024 from a negative R$1,041 million in Q2 2023, mainly due to higher debt issuance[128] - Free cash flow increased to R$2,750 million in Q2 2024 from R$1,728 million in Q2 2023, driven by stronger operating cash flow[129] Operational Performance - Consolidated revenues for 2024 Jan-Jun reached 30,932,275 thousand Brazilian Reais, compared to 28,107,642 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated gross added value rose to 11,293,474 thousand Brazilian Reais in 2024 Jan-Jun, up from 6,821,879 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated net added value increased to 9,579,887 thousand Brazilian Reais in 2024 Jan-Jun, compared to 5,257,661 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated payroll expenses grew to 3,763,955 thousand Brazilian Reais in 2024 Jan-Jun, up from 3,168,346 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated taxes, fees, and contributions increased to 3,058,492 thousand Brazilian Reais in 2024 Jan-Jun, compared to 2,304,380 thousand Brazilian Reais in 2023 Jan-Jun[8] - Consolidated income (loss) from continuing operations improved to 1,687,636 thousand Brazilian Reais in 2024 Jan-Jun, compared to a loss of 2,360,901 thousand Brazilian Reais in 2023 Jan-Jun[7] - Consolidated depreciation and amortization expenses rose to 964,214 thousand Brazilian Reais in 2024 Jan-Jun, up from 870,917 thousand Brazilian Reais in 2023 Jan-Jun[7] - Consolidated financial results, net, decreased to 927,705 thousand Brazilian Reais in 2024 Jan-Jun, down from 1,959,403 thousand Brazilian Reais in 2023 Jan-Jun[7] International Operations - International segment EBITDA reached R$1,500 million in 2Q24, with a margin of 21%, driven by price recovery and new market access[23] - The company gained 32 new export authorizations in 2Q24, contributing to increased export volumes and revenue[23] - International segment net operating revenues grew 16.8% year-over-year to R$7.073 billion, with a gross margin increase of 16.3 percentage points to 27.3%[44] - Adjusted EBITDA for the international segment reached R$1.486 billion, a 516.2% year-over-year increase, with a margin of 21.0%[44] - BRF achieved a 38.4% market share in GCC countries, up 1.20 percentage points quarter-over-quarter, and 27.2% market share in Turkey's processed food market[45] - In Chile, Sadia's market share grew across all categories, supported by a campaign reaching over 3 million people on TV and 60 million digital impressions[50] - BRF launched 31 new SKUs, including a pork portfolio for the USA, and expanded participation in trade fairs like Sial Shanghai and FHA Singapore[49] Efficiency and Cost Management - BRF+ 2.0 program captured R$374 million in efficiencies in 2Q24, bringing the total to R$812 million for the year[24] - COGS/kg decreased by 11.8% year-over-year and 3.1% quarter-over-quarter, driven by lower grain and oil costs and changes in product mix[34] - The company's efficiency program, BRF+, captured R$374 million in savings in 2Q24 and R$812 million in the first half of the year[75] - The company conducted one-off arbitrage operations to reduce grain origination costs, improving results in other business segments[54] - Cost of Goods Sold (COGS) increased by 2.6% yly and 8.3% q/q, with unit costs decreasing by 2.7% in the corporate view and 7.5% in the managerial view[73] - Operating expenses increased by 16.4% yly and 10.5% q/q, with selling expenses rising by 12.6% yly and 8.9% q/q[80] Market and Sales Performance - Unemployment rate in Brazil reached 6.9% in Q2 2024, with a 5.8% year-over-year increase in average disposable income, boosting domestic sales of processed products[35] - Sadia's 80th anniversary campaign achieved over 6 million website hits, 120 million media reach, and 1.2 million product registrations, with innovative QR code usage on packaging[39] - Pet food sales volume increased year-over-year and quarter-over-quarter, driven by Super Premium and Super Premium Natural segments[53] - Net Operational Revenues increased by 22.3% year-over-year (yly) and 11.6% quarter-over-quarter (q/q), driven by a 5.4% yly and 7.8% q/q increase in volumes sold, and a 16.0% yly and 3.5% q/q increase in average price[68] - The company's net revenue, excluding hyperinflation effects in Turkey and hedge accounting, reached R$14,672 million in 2Q24, an 11.5% increase yly compared to R$13,161 million in 2Q23[68] Financial Instruments and Hedging - Cumulative Notional Exposure for derivatives instruments settled in 2Q24 reached US$556 million, up from US$306 million in 1Q24[65] - Foreign currency translation gain for the consolidated entity in Q2 2024 was 252,463 thousand Brazilian Reais, compared to (326,446) thousand Brazilian Reais in Q2 2023[5] - Cash flow hedges reclassified to profit or loss for the consolidated entity in Q2 2024 was (6,618) thousand Brazilian Reais, compared to 391,081 thousand Brazilian Reais in Q2 2023[5] - The impact of exchange rate variations on monetary assets and liabilities, including derivatives, totaled +R$258 million in 2Q24[89] - The company's working capital in local currency as of June 30, 2024, was R$492,024, with an average rate of 10.42% (down from 12.28% on December 31, 2023)[197] - The export credit facility had an outstanding balance of R$1,583,437 as of June 30, 2024, with an average rate of 11.99% (down from 13.26% on December 31, 2023)[197] Environmental and Social Responsibility - The company achieved 35% clean energy usage in its operations, progressing towards its 50% target by 2030[116] - BRF maintained 100% traceability of direct grain suppliers and reached 90% traceability for indirect suppliers in the Amazon and Cerrado regions[115] - The company incurred losses of R$113,083 due to extreme weather events in Rio Grande do Sul, impacting operations and leading to additional expenses for repairs and donations[158] Subsidiaries and Investments - BRF holds 100% equity in key subsidiaries such as BRF Energia S.A., BRF Foods UK Ltd., and BRF Pet S.A. in Brazil, maintaining consistent ownership from 2023 to 2024[155] - BRF GmbH's ending balance increased to 15,769,833 from 12,220,014, driven by income of 3,262,362 and capital transactions of 229,755[188] - BRF Energia S.A. received a capital increase of 10,000, contributing to an ending balance of 10,383[188] - BRF Foods UK Ltd. reported a loss of 126, resulting in an ending balance of 1,168[188] - BRF Investimentos saw a capital increase of 5,841, leading to an ending balance of 6,020[188] - Sadia Alimentos S.A. recorded a loss of 8,247, reducing its ending balance to 2,882[188] - Sadia Uruguay S.A. experienced a capital reduction of 58,515, resulting in an ending balance of 50,494[188] Tax and Legal Matters - The company recognized tax assets related to IPI, with a balance of R$1,153,692 as of 06.30.24[178] - The company used PIS, COFINS, IPI, and other recoverable taxes to offset federal taxes payable in the amount of R$728,107 for the six-month period ended on 06.30.24[180] - Deferred income taxes increased to R$2,206,876 for the Parent Company and R$2,190,242 for the Consolidated as of June 30, 2024, up from R$2,054,826 and R$2,052,983 respectively at the end of 2023[181][182] - Tax losses carryforward for the Parent Company and Consolidated stood at R$2,496,088 and R$2,537,169 respectively as of June 30, 2024, showing minimal change from December 31, 2023[181] - The Parent Company recognized deferred income taxes of R$215,367 in other comprehensive income for the period ending June 30, 2024[182] - The effective tax rate for the Consolidated was 16.7% for the April-June 2024 period, compared to 8.4% in the same period of 2023[183] - Judicial deposits for the Parent Company decreased slightly to R$403,345 as of June 30, 2024, from R$405,450 at the beginning of the period[184] - Consolidated judicial deposits increased slightly to R$415,957 as of June 30, 2024, from R$415,718 at the beginning of the period[185] Inventory and Receivables - Finished goods inventory increased to 2,165,594 as of 06.30.24, up from 1,988,163 on 12.31.23[171] - Raw materials inventory decreased to 880,609 as of 06.30.24, down from 1,521,744 on 12.31.23[171] - Trade accounts receivable from third parties in the domestic market decreased from R$1,729,067 on December 31, 2023, to R$1,570,470 on June 30, 2024[168] - Expected credit losses for trade accounts receivable increased from R$(547,078) on December 31, 2023, to R$(637,452) on June 30, 2024[169] - Not overdue trade accounts receivable increased from R$5,532,133 on December 31, 2023, to R$6,020,373 on June 30, 2024[170] - Overdue trade accounts receivable for more than 360 days increased from R$521,020 on December 31, 2023, to R$588,385 on June 30, 2024[170] Currency and Inflation Impact - The Turkish subsidiary experienced a 24.7% price index increase due to hyperinflation, affecting income before financial results and taxes by R$(22,244) and recognizing revenue impacting the financial result by R$98,223[163] - The inflation adjustment in Argentina impacted the Income

BRF S.A. (BRFS) is likely to register bottom-line growth when it reports second-quarter 2024 earnings on Aug 14. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 7 cents per share. The figure indicates improvement from a loss of 10 cents reported in the year-ago quarter. The company's top line is likely to decline year over year. The consensus mark for quarterly revenues is pegged at $2.6 billion, indicating a decline of 2.6% from the prior-year quarter's rep ...

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Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 31: Texas Roadhouse, Inc. (TXRH) : This restaurant company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days. Texas Roadhouse has a PEG ratio of 1.58 compared with 1.81 for the industry. The company possesses a Growth Score of A. Daktronics, Inc. (DAKT) : This electronic display systems company carries a Zacks Ran ...

The investment community will be paying close attention to the earnings performance of BRF in its upcoming release. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 170% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.55 billion, showing a 2.62% drop compared to the year-ago quarter. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 29: Daktronics has a PEG ratio of 0.45 compared with 0.52 for the industry. The company possesses a Growth Score of B. KirinHoldings Company, Limited (KNBWY) : This food and beverages, pharmaceuticals, and health science company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.7% over the last 60 days. See the full list of top ranked s ...

Core Insights - The article emphasizes the importance of combining a strong Zacks Rank with a high Value grade to identify undervalued investment opportunities [1][4] Valuation Metrics - The Value category assesses undervalued companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [2][5] - BRFS has a Value grade of A, while CELH has a Value grade of F, indicating a significant difference in perceived value [3] Company Comparisons - BRFS has a Zacks Rank of 1 (Strong Buy), while CELH has a Zacks Rank of 5 (Strong Sell), suggesting a more favorable earnings outlook for BRFS [7] - BRFS has a forward P/E ratio of 11.39 compared to CELH's 44.40, indicating that BRFS is significantly cheaper relative to its earnings [8] - The P/B ratio for BRFS is 1.24, while CELH's P/B ratio is 31.69, further highlighting BRFS's undervaluation [6] Earnings Outlook - BRFS is noted for its improving earnings outlook, which enhances its attractiveness as a value investment compared to CELH [9]

Shares of this chicken, beef and pork producer have returned -8% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Food - Miscellaneous industry, to which BRF belongs, has lost 1.6% over this period. Now the key question is: Where could the stock be headed in the near term? Earnings Estimate Revisions For the current quarter, BRF is expected to post earnings of $0.07 per share, indicating a change of +170% from the year-ago quarter. The Zacks Consensus Estimate has changed +40 ...

Shares of the chicken, beef and pork producer have depreciated by 2.35% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.82% and the S&P 500's gain of 0.43%. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BRF. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability ...

Company Performance - BRF's stock closed at $4.17, reflecting a +0.24% change from the previous trading day's closing, lagging behind the S&P 500's daily gain of 0.64% [1] - For the full year, Zacks Consensus Estimates project earnings of $0.33 per share and revenue of $10.4 billion, representing changes of +210% and +7.51% from the prior year [5] - In the upcoming earnings disclosure, BRF is projected to report earnings of $0.07 per share, indicating year-over-year growth of 170%, with quarterly revenue expected at $2.55 billion, down 2.62% from the year-ago period [6] Analyst Estimates and Valuation - Recent changes to analyst estimates for BRF reflect shifting business dynamics, with positive revisions indicating analysts' confidence in the company's performance [2] - BRF has a Forward P/E ratio of 12.8, which is a discount compared to the industry average Forward P/E of 16.71 [3] - The PEG ratio for BRF is currently 0.35, significantly lower than the average PEG ratio of 2.04 for the Food - Miscellaneous industry [11] Industry Context - The Food - Miscellaneous industry is part of the Consumer Staples sector, holding a Zacks Industry Rank of 172, placing it in the bottom 32% of over 250 industries [8] - Over the past month, BRF's shares gained 23.44%, outperforming the Consumer Staples sector's gain of 0.85% and the S&P 500's gain of 3.82% [9] Zacks Rank and Performance - BRF currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Rank system showing an average annual return of +25% for 1 stocks since 1988 [7] - The Zacks Consensus EPS estimate for BRF has increased by 12.07% over the last 30 days, indicating positive sentiment among analysts [7][10]